To: bruinbirdman
70 is better than i expected
7 posted on
09/16/2009 6:34:02 PM PDT by
dalebert
To: dalebert
"70 is better than i expected"70% is a better mark to market than zero.
This was just a "pilot". Let's get the other $100 trillion on the market, too.
yitbos
9 posted on
09/16/2009 6:47:43 PM PDT by
bruinbirdman
("Those who control language control minds.")
To: dalebert
The leverage in the deal leads the private investors to overpay for the assets. They put in only $1 for each $13 put in by the government in the form of non-recourse (read you don't have to repay) loans and matching equity. The private investor gets half of the upside but their downside is limited to their $1 investment. It's the equivalent of buying an option on the upside value of the assets from the government. Heads I win, tails you lose. Thank the Lord that this plan fizzled before the FDIC was put on the hook for $500 billion, as originally planned!
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson